A recent article in ARTnews asserts widespread art losses caused by Hurricane Sandy in lower Manhattan caused a “paradigm shift” for art underwriters. While that characterization is a bit sensationalized, carriers have certainly learned some costly lessons from Sandy (and other recent catastrophic losses) and are revising their underwriting and pricing strategies.
The central theme of the observations provided in the article: expect rates for art and other collectibles to rise, and expect much greater underwriting scrutiny for how and where art is located. Not quite a paradigm shift. After all, carriers have never operated under the underwriting paradigm that storing art in a basement – whether in Chelsea, Southampton, or Pikes Peak – was ever a good idea. To read more: http://www.artnews.com/2013/08/05/sandy-creates-paradigm-shift-for-insurers/